A new security system could be used to tackle overseas card fraud by verifying that a customer is in the same country that a transaction is taking place, it has been reported.
According to news service IDG, the IPX Country Lookup service from Swedish-based handset maker Ericsson could help banks monitoring payments made in fraud hotspots overseas.
Ericsson's UK and Ireland manager of IPX products Peter Garside said the technology can be used by mobile operators' networks around the world. Each time a bank requests verification of a transaction, the firm would pay the operator a small fee and charge its own fee to the card issuer.
He added that the system only confirms which country a person is in and not their exact location. Furthermore, the information on their position would not be stored once it has been passed to the bank.
Country Lookup could even trace a customer when their phone is off, provided they have turned it on at least once while abroad, IDG noted.
It said 2007 figures from payments association Apacs show that approximately 40 per cent of fraud carried out on UK-issued cards was committed abroad.
According to news service IDG, the IPX Country Lookup service from Swedish-based handset maker Ericsson could help banks monitoring payments made in fraud hotspots overseas.
Ericsson's UK and Ireland manager of IPX products Peter Garside said the technology can be used by mobile operators' networks around the world. Each time a bank requests verification of a transaction, the firm would pay the operator a small fee and charge its own fee to the card issuer.
He added that the system only confirms which country a person is in and not their exact location. Furthermore, the information on their position would not be stored once it has been passed to the bank.
Country Lookup could even trace a customer when their phone is off, provided they have turned it on at least once while abroad, IDG noted.
It said 2007 figures from payments association Apacs show that approximately 40 per cent of fraud carried out on UK-issued cards was committed abroad.
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